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Ottanta Company is considering a new project whose data are shown below. The equipment that would be used has a 3-year tax life. Under the
Ottanta Company is considering a new project whose data are shown below. The equipment that would be used has a 3-year tax life. Under the new tax law, the equipment used in the project is eligible for 100% bonus depreciation, so it will be fully depreciated at t=0. The equipment would have a zero-salvage value at the end of the project's life. The required change in net operating working capital (NOWC) would be $1,000, which will be recovered at the end of the project. Revenues and operating costs are expected to be constant over the project's 3-year life. What is the project's NPV? What is the project's MIRR
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